Sharam Industries has a 120-day operating cycle. If its average age of inventory is 50 days, how
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Time = 62.3 days Operating Cycle (OC) Purchase Raw Materials on Account Collect Accounts Sell Finished Goods Average Age of on Account Inventory lÄAl) Average Collection Period (ACP 44.8 days Pay 17.5 days Accounts Cash Payable Inflow Cash Conversion Cycle (CCC Average Payment Period (APP 51.2 days 11.1 days Cash Outflow Time
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ACP OC AAI ACP 120 days 50 days 70 days CCC OC APP CCC 120 days 30 days 90 days Ti...View the full answer
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Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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